ETF 'Vol-mageddon': Lessons Learned for Investors

The video discusses the aftermath of the VIX spike in early February, which marked the peak of VIX ETP mania. It highlights the significant drop in volume, particularly in inverse VIX ETPs like XIV and SVXY, and the market's reaction to these changes. The video also covers the performance of long volatility trades and the future of VXX as it approaches maturity. Additionally, it addresses the challenges of transferring liquidity in ETPs, using examples like UWTI to illustrate the difficulties in maintaining trading volume.

What was the initial monthly trading volume of VIX ETPs before the drop?

• $25 billion

• $40 billion

• $75 billion

• $100 billion

Which inverse VIX ETP was most affected by the Volmageddon event?

• SVXY

• XIV

• VXX

• UWTI

How did the Volmageddon event impact SVXY's investor base?

• No impact on investors

• Doubled the investor base

• Scared away retail investors

• Increased retail interest

What is the expected fate of VXX in the near future?

• It will merge with another ETN

• It will double in volume

• It will cease to exist

• It will be rebranded

What challenge is associated with transferring liquidity from VXX to a new product?

• It requires no effort

• It is difficult and takes time

• It is as easy as moving assets

• It can be done in a month